The Senate Committee on Finance has revealed how the country can generate substantial revenue from the informal sector.
The Chairman of the Finance Committee, Senator Sani Musa, revealed on Sunday in a statement that if harnessed correctly, the informal sector, mainly the mining industry, could generate about $3 billion for the country annually.
Describing the industry as a hidden gem, Musa said it had excellent revenue potential for the nation.
According to him, the Senate Finance Committee intends to focus more on the informal sector, which constitutes about 80 percent of the Nigerian economy, with its spotlight on the mining industry.
Musa said the committee’s strategic move will bring economic benefits and promote safer and more responsible practices in the industry.
He said, “This was corroborated by the Ministry of Mines and Steel Development that the solid minerals have can about 2-3 billion US dollars annually
“We will dedicate our efforts to understanding and nurturing this sector with appropriate legislation with emphasis on formalizing artisanal and medium-scale mining activities.
“We will harness and raise revenue sources from both the Blue Marine and the Creative Economies, setting targets.
“The committee will legislate to encourage regulations of consumption and production, facilitate enabling environment through legislation for domestic industries to develop and stimulate economic growth through direct foreign investments inflow.
“Upholding fiscal discipline is pivotal to our financial health. As Senate Finance Committee, we will fasten our commitment to prudent revenue sourcing, ensuring that every income earned is being accounted for so that our nation’s priorities and development goals can be addressed.”
Speaking further, Musa explained that the committee would ensure that the annual budget aligns with the Medium-Term Expenditure Framework and fiscal strategy paper to provide a coherent roadmap, bridging medium-term aspirations with concrete budgetary plans and fostering accountability in efficiently utilizing resources.
He also pledged that the committee would also extend unwavering support to the Presidential Committee In Fiscal Policy and Tax Reforms in its ambitious endeavour to address the substantial annual revenue gap of N20 trillion from non-oil sources and also to achieve an 18 percent tax-to-GDP ratio.
“In parallel, the committee underscores its commitment to legislate on comprehensive tax reforms, a pivotal step towards augmenting revenue generation and fostering sustainable economic growth.
“Stringent oversight of revenue agencies will be entrenched as our responsibility extends to overseeing the activities of revenue-generating agencies. Through rigorous management, we will ensure their transparency, accountability, and efficiency, thus maximizing revenue collection for national development,” Musa added.
